Romancing the unknown--it's one of life's eternal
passions. Humanity continually ponders age-old questions: What will
tomorrow bring? What can I expect for my family? For my business?
Will I be healthy, happy and successful? Through the centuries, the
queries have remained much the same--though the methods used to
find the answers have changed with time and vary among cultures.
From the ancient Greeks and Romans who sought divine revelations
from the oracles to the revered medicine man in North American
Indian tribes, the common theme remains: a burning interest in
unleashing the mystery of the future.

With that in mind, we strove to determine what the remainder of
1998 holds for small business. We consulted a potpourri of experts,
including small-business advocates, an astrologer, a futurist and a
numerologist, for their predictions. Notably, despite their
differing backgrounds and experiences, a singular picture of the
year ahead--and beyond--emerged. The year will be a positive one,
they unanimously agreed. And for some sectors, the next several
months could even surpass achievements made in 1997.

"I think it's going to be a good year for small
business," says Jere W. Glover, chief counsel for advocacy for
the SBA. "I think we're going to continue to see small
businesses grow in record numbers, and I think we're going to
see more small businesses surviving."

Vast potential is already one of 1998's hallmarks. Our
experts expect banks and other financial institutions to greatly
increase lending and credit availability to small businesses,
opening doors to more newcomers and releasing established firms
from the capital confinement that can hinder growth.

And there's another factor affecting the possibilities
facing today's small businesses: their diligent political
strides. Entrepreneurs today rely more and more on the robust
national organizations lobbying in Washington with increasing savvy
and political strength. Their collective voice receives legislative
attention and action on a level unheard of just a decade ago.

"I believe we are at a [turning] point in history,"
says Watts Wacker, a futurist at SRI Consulting, a business trend
consulting firm in Menlo Park, California. "The way we
organize our lives--literally every assumption to how we run our
commerce, our governments and our affairs--is about to change. The
last time this happened was probably with the discovery of the New
World and the Renaissance of 500 years ago. And it will provide
wealth-creating capabilities that have not been seen very often,
that portend for tremendous opportunities economically."

Economic Reality

Despite turbulent stock market activity in late 1997, experts
believe the performance of our solid macroeconomic environment will
only improve. "Overall, the economy is doing very well,"
says Larry Winters, vice president of small-business services for
Dun & Bradstreet, an international research-based business
information provider in Murray Hill, New Jersey. "Quarterly
earnings have been favorable, profit margins are good and
unemployment is low. Most economic indicators are extremely
favorable."

However, even the most optimistic outlook can't obscure the
foremost challenge facing today's entrepreneurs: the tight job
market. "One of the biggest concerns in 1998 for small
business will be finding qualified and skilled employees,"
confirms Glover. "The most common complaint we hear today is
`We can't find good, skilled workers.' And I think
that's going to continue."

Unfortunately, experts expect the labor situation to intensify
in the decades to come. "Over the next 50 years, the labor
market will get tighter every year," says David Birch,
president of Cognetics Inc., an economic research firm in
Cambridge, Massachusetts. "Both the population growth rate and
the labor force growth rate are slowing dramatically."

Whereas finding skilled labor is just a hindrance today,
tomorrow it may plague you and your competitors to a perilous
extent. Birch predicts the potential impact: "There are no
people left--period. There's no way you can grow; there's
no way to hire. And that's an issue." In fact, it's
already happening in some parts of the country--Birch has witnessed
businesses in Madison, Wisconsin, struggle with an unemployment
rate of 1.9 percent.

On the bright side, relief from distant shores may be on the
way, and according to Wacker, this new scenario may work in your
favor. "Fifty percent of the people in the world now expect to
spend the majority of their life in a nation other than their birth
nation," he says. "I think you'll see the mobility of
the labor force become a global phenomenon. [People] are going to
be attracted to this country because of what it
represents."

Going Global

As technology freely crosses borders and international markets
open their arms ever wider to new business, the '90s wave of
globalization shows no signs of cresting. And while countless
entrepreneurs crossed horizons in the past, even more will follow
in the coming months and years.

"International trade is driving the overall economy,"
says Winters. "Small business still represents a fairly small
percentage, but the number of businesses growing in international
trade is increasing."

Despite the initial enthusiasm for breaking into international
markets, however, the logistics sometimes provide a sobering
reality check. "As far as extending credit, [building]
relationships, finding distributors, making sure their products are
used and understood--it's hard to do that long distance,"
Winters says. "But I think [entrepreneurs] can do it, and they
should learn how to do it and strategically pick countries they
think they can have a quick impact on."

Wacker is even more optimistic. "A 15- or 20-person company
today has just as much potential and the necessary resources and
skill levels to be a global company," he says.
"That's one of the wonderful things about [going global]:
It's not just for big companies."

As the nation's small-business owners peruse the global
landscape for opportunities, the challenge becomes targeting those
areas that hold the most potential for 1998 and beyond. Our experts
point to Asia, Canada, Eastern and Western Europe, and Latin
America. "China, India, the Middle East, Pakistan--to me,
those are by far the biggest opportunities over the next 20
years," says Birch.

But predictably, those lacking experience in the global arena
should start out with modest aspirations, says Winters. "I
think Canada and Mexico are great places to start because of their
proximity, and I think Latin America is still a great
opportunity," he says. "Eastern Europe also has a ton of
potential, but [entrepreneurs] should start a little closer to home
first, to get grounded."

Tech Talk

Such global accessibility can arguably be traced back to one of
the most significant developments to impact our modern world--the
Internet. At long last, the information superhighway grants
businesses of all dimensions an easy--and inexpensive--mode of
promoting products and services to an audience that was, for
practical purposes, previously unreachable.

"I think it's going to level the playing field
considerably for smaller companies," says Winters. "Do I
think it's going to happen [this year]? I think it will start.
But [entrepreneurs] should get their feet wet now. I think they
should get in it because it's got the potential to be a major
driver of the economy in the future."

That's because of a remarkable capability still in the early
stages of development and acceptance, known widely as e-commerce,
or electronic commerce. And although consumers today understand the
risks involved when disclosing credit card numbers over unsecured
lines, that will all change tomorrow when a program is developed
that guarantees security. A handful are in the works, including one
under joint construction by Visa and MasterCard.

The Internet aside, technology in general has provided a
strategic edge for entrepreneurial firms. "This country has
always been blessed with being innovative, and smaller businesses
are usually the most nimble of the innovative," says
Wacker.

Although some companies still underutilize the capacity of
technology, those on the cutting edge will use its potential this
year more than ever to take their businesses to new heights.
"I think technology has done nothing but help small
business," Winters says. "And I think it will continue to
play a significant part in their development in 1998."

Perhaps most important, technology will continue to gradually
alter the existing landscape. Although the effects will not be
immediately evident, over time the changes will elicit a whole new
perspective. Says Wacker, "I think the pervasiveness of
technology today is at least as profound as the Gutenberg Bible was
in the 1460s. I think every new industry will have at least [some]
technological prowess."

Movers And Shakers

By far the most compelling, and fastest-growing, sector of our
economy encompasses what was once a greatly outnumbered domain.
Today, statistics speak to the contrary in regard to women- and
minority-owned small businesses: According to the National
Foundation for Women Business Owners, at the end of 1996, one-third
of all U.S. businesses were owned by women, and they generated
nearly $2.3 trillion in sales--an increase of 236 percent over 1987
figures.

The numbers are even higher for 1997, and experts don't
foresee them slowing anytime soon. "I think it's going to
be dramatic," Winters says. "I think financially they
will be funded, and I think the population they're selling to
will be just as diverse as they are. I believe if you're a
minority business owner, you'll be able to sell more
effectively to some of those minority groups. The numbers of white
males [in business] are decreasing significantly, just as the
numbers of women and [minorities] are increasing."

The apparent success of both minority- and women-owned firms,
however, all comes down to support, and these businesses are
presently getting a lot of it. "The financial services
industry is recognizing them as a viable group," says Winters,
"so business loans are being directed to those types of
businesses. Wells Fargo, NationsBank, Chase--they all have special
programs, especially for women-owned businesses."

Journey's Beginning

As it goes, virtually anything can happen in the coming days to
confirm or deny our experts' predictions. Yet the possibilities
behind our educated conjecture remain genuine. So what exactly will
1998 hold for small business? Of course, no one can answer
precisely; the story, as yet, remains untold.

But a look into the recent past supports a promising outlook for
the weeks and months ahead. For those tracking the trends, experts
predict health care will continue its dominance of the business
landscape--thanks to an aging population with access to substantial
disposable income. Homebased businesses should also continue their
rapid growth. And outsourcing, the cost-effective alternative for
large corporations and small businesses alike, will continue to
nourish the country's independent contractors.

The good news is that the businesses reaping profits today can
be found in all types of industries. "We don't see a
particular industry focus," says Birch. "We find rapidly
growing companies in all sectors of the economy, in proportion to
the number [of them] in the economy. Entrepreneurs are having a
field day."

Sixth Sense

I've had the ability all my life," says Carole Kennedy,
a self-proclaimed intuitive consultant and founder of Carole
Kennedy & Affiliates, a worldwide psychic consulting firm in
Mount Juliet, Tennessee. From assisting police in locating the
remains of missing persons to helping resolve professional matters
for her small-business clientele, Kennedy has dedicated nearly 20
years of her life to relaying the information she receives through
so-called extrasensory perception (ESP). The following are some of
her predictions for 1998:

Women: "Women-owned businesses are going to take
off at astronomical rates," she says. "Businesses started
by women in the next 10 years will [become] the biggest part of the
American economy."

International business: "In the global market,
you're going to have some hot spots and some troubles."
Hot spots include Australia, Canada and Western Europe, Kennedy
says. And the trouble spots? She points to Asia, Cuba and South
America.

Technology: "[The government] is getting ready to
control the Internet--big-time control. It will start somewhere
toward the [second half] of the year, maybe July or September. But
as far as a marketplace, it's going to be the place to be.
Consumers will be spending more than in the past."

The environment: "There will be some new
regulations, especially for air, water and land. And [the
government] will control hazardous waste differently."

Trends: "Health is going to be a huge trend.
It's going to go back to more and more basics--more herbal
treatments." Educational CDs and tapes for home learning will
also rise in popularity, in addition to pastas, health foods,
juices and vegetables, according to Kennedy.

Expectations: "Excitement. We are on the move and
on our way. We're not going to have the whole market, but
we're going to have a larger piece of the pie, and a lot more
respect--and we like that."

Numbers Game

We asked Karin Pischke, a Chicago student of numerology with 30
years of experience, to interpret the state of small business for
1998. She derived her reading from a simple formula, which breaks
down larger figures into a singular number (except for 11 and 22).
For example, if you add 1+9+9+8, you get the sum of 27. If you then
add 2+7, the result is 9. Each of the numbers holds a different
meaning; generally, the higher the number, the better the luck.
Below are some of her conclusions:

The year overall: 9. "The number 9 indicates a good
time for any company having philanthropic or humanitarian aspects,
especially if they can combine teaching and travel," Pischke
explains. "But they would also have to curb the urge for
personal satisfaction and ego gratification; otherwise it may
backfire."

February 1998 and November 1998: 11. During these
months, entrepreneurs will gain "added perceptions, added
awareness and different capabilities of understanding," says
Pischke. However, their idealism may leave them unhappy when
perfection is not attained or lead them to blur the lines between
reality and fantasy.

March 1998 and December 1998: 3. "These are good
periods for businesses dealing with public speaking, lectures or
other types of public interaction." These may also be good
months for "creative and inspirational pursuits."

April 1998: 4. "A very stable time for all
companies," she says.

June 1998: 6. This is the best month for businesses
dealing in the apparel, restaurant, health, art and music
industries, according to Pischke.

August 1998: 8. "Any business started this month,
or already established, will find this a time of significant gain
in money, achievement, power and authority, due to confidence and
hard work," says Pischke.

October 1998: 1. "This month is a good time to
start a new business," she says. The number 1 denotes
opportunities in leadership, inner strength and new directions.
Entrepreneurs will find success, but they must rely on themselves,
rather than others. October will also be a great time to launch or
manufacture a new product.

Sign Of The Times

Astrologers believe the alignment of the sun, moon, stars and
planets directly affects the events occurring here on earth. So we
called upon Del Norwood, an astrologer in Chicago, and asked her to
forecast the rest of the year based on 1998's planetary
cycles.

"The year gets better as it goes on," she says,
"like a child learning to walk. In the early part of the year,
just take baby steps because the situation overall hasn't
gelled yet. And then, as the year goes on, I think the key word
will be `innovation.' The new ideas are taking over more and
more."

In the beginning of 1998, Pluto is the most important
planet--and that will last until the fall. The last planet in line
at this time is Saturn, which represents the principle of gaining
wisdom from experience. "I think it would be prudent to be
conservative, and it's a time to rethink and restructure
plans," she says. "I think it would be an excellent time
to review your company's mission statement or make one if you
don't have one."

As winter ends, "I think it's going to be a
volatile and unstable period," Norwood says. "It's a
time to observe what's happening, and I think it's going to
be a period of a major shift in public opinion, followed by a great
period of optimism."

In midsummer, act conservatively, and lean on experience
during business dealings.

In the fall, the planets lack a coherent pattern,
according to Norwood. "I would characterize this time by the
three Cs: To consolidate ideas and then to profit from
communicating and cooperating," she says.

By year-end, entrepreneurs should have a much better
sense of where they're going with their business. Says Norwood,
"These months should be really comfortable. [Entrepreneurs]
will be much more firmly established than they were at the
beginning of the year."

Placing Their Bets

Compiled by Keasha Dumas and Jesse Hertstein

We've talked to the experts about where they predict small
business is heading this year, but what about all you entrepreneurs
out in the trenches? For some insight into what you see for
the year ahead, we turned to the hottest small companies around.
Taken from our most recent "Hot 100," a listing of the
100 fastest-growing new small businesses, the following
small-business owners sound off about growth, employees and the
economy--and point to a year full of opportunities for small
enterprise.

"In terms of the overall economy, we believe small
businesses are in a position of advantage and will continue to be
in that position [this year]. Our advantage in particular is being
flexible and working closely with our customers to ensure customer
service of the highest degree. So we're investing in our own
infrastructure to stabilize and increase our ability to work this
way, to balance the explosive growth we've experienced."
--Mindy Oppenheimer

"In our area, things look wonderful. We had tremendous
growth in the last two years and expect the same for '98. We
just added a new computer training center and expect a real boom
for the upcoming year. The survival rate for small businesses has
been uncommonly high, and I am very optimistic." --Phyllis
Eller-Moffett

"In our industry, I think the outlook is good for increased
business. Large companies are still outsourcing their help desk
services, internal network support, and Web page design and
hosting, but I think the field will narrow down to companies that
can follow through on their promises.

"The challenge to us and other companies will be finding
qualified employees. The unemployment rate is so low that there are
a lot of companies competing for the same employee base."
--Jerry Fulton